USD/CNH seen struggling near 6.5000 – UOB

Pablo Piovano FXStreet

UOB Group’s FX Strategists see USD/CNH facing a tough resistance in the vicinity of 6.5000 in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could edge above 6.4800 but the major resistance at 6.4930 is not expected to come under threat’. Our view was not wrong as USD rose to 6.4860 before pulling back. Upward momentum is beginning to wane and this coupled with overbought conditions suggests that USD is unlikely to strengthen much further. For today, USD is more likely to trade between 6.4680 and 6.4900.”

Next 1-3 weeks: “We have expected a stronger USD since early last week. Our view was not wrong and in our update yesterday (22 Jun, spot at 6.4690), we indicated that USD is still strong but ‘overbought conditions suggest that 6.4930 may not come into the picture so soon’. While USD rose to 6.4860 during NY session, shorter-term momentum appears to be struggling. That said, USD could move above 6.4930 but may not be able to maintain a foothold above this major level (next resistance is at 6.5000). On the downside, a breach of 6.4500 (‘strong support’ level was 6.4400 yesterday) would indicate that the current USD strength has run its course.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.